207 / 327
Shaping the future of software driven business
Consolidated Financials •
207
Consolidated Statement of Changes in Equity for the year ended March 31, 2019
Nature and purpose of reserves
a) Securities premium reserve
Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with
the provisions of Section 52 of the Companies Act, 2013.
b) General reserve
General reserve represents amounts transferred from profit for the period and from Share options outstanding reserve on
exercise / expiry of employee share options. It is a free reserve as per section 2 (43) of the Companies Act, 2013.
c) Share options outstanding reserve
Share options outstanding reserve represents the cumulative expense recognized for equity-settled transactions at each
reporting date until the employee share options are exercised / expired on which such amount is transferred to General
reserve.
d) Gain on bargain purchase
The excess of the Group’s portion of equity of the acquired company over its cost is treated as gain on bargain purchase
in the financial statements.
e) Capital redemption reserve
Capital redemption reserve represents the nominal value of the shares bought back; and is created and utilised in
accordance with Section 69 of the Companies Act, 2013.
f) Special Economic Zone re-investment reserve
The Special Economic Zone re-investment reserve has been created out of the profit in terms of the provisions of Section
10AA(1)(ii) of the Income tax Act, 1961. The reserve should be utilised by the Group for acquiring new plant and machinery
for the purpose of its business in terms of Section 10AA(2) of the Income tax Act, 1961.
g) Cash flow hedge reserve
The cash flow hedge reserve represents the cumulative effective portion of gains or losses arising on changes in fair
value of hedging instruments entered into towards highly probable transactions. Such gains or losses are subsequently
recognised in the statement of profit and loss in the period in which such transaction occurs.
h) Foreign currency translation reserve
The foreign exchange differences arising from the translation of financial statements of foreign operations with functional
currency other than Indian rupees is recognised in other comprehensive income and is presented under equity in the
foreign currency translation reserve.
This space is intentionally kept blank